MicroStrategy, a business intelligence company, recently announced a significant stock offering. On January 30, the company sold 7.3 million shares of its 8% Series A perpetual strike preferred stock, known as STRK. The public offering price was set at $80 per share. This amount is nearly three times the initial plan of 2.5 million shares.
The company expects to raise about $563.4 million from this offering. MicroStrategy plans to use these funds for general corporate purposes, particularly to buy more Bitcoin. As of January 27, the company owned 471,107 BTC, valued at over $46 billion.
Perpetual preferred stock is unique because it does not have a maturity date or a set redemption timeline. Instead, it pays fixed dividends indefinitely as long as the company is operational.
The perpetual strike preferred stock has a liquidation preference of $100 per share. It will accumulate dividends at a fixed rate of 8% per year. However, regular quarterly dividends will only be paid if the board of MicroStrategy declares them.
MicroStrategy recently announced a plan to repay $1.05 billion in debt early. This debt was acquired through “convertible notes”.
